Interest only mortgage
zoesma
Posts: 5 Forumite
Good morning
We have been advised by husband's accountant to maybe take out an interest free mortgage.
We own 2 houses already,which we rent out.,mortgages paid off.
My husband is self employed,I do not work,I'm 63,
We would like to carry on the renting of both properties
We have about £70,000 sitting in savings accounts with very little
interest.
So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
What do you all think??
We have been advised by husband's accountant to maybe take out an interest free mortgage.
We own 2 houses already,which we rent out.,mortgages paid off.
My husband is self employed,I do not work,I'm 63,
We would like to carry on the renting of both properties
We have about £70,000 sitting in savings accounts with very little
interest.
So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
What do you all think??
0
Comments
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Good morning
We have been advised by husband's accountant to maybe take out an interest free mortgage.
We own 2 houses already,which we rent out.,mortgages paid off.
My husband is self employed,I do not work,I'm 63,
We would like to carry on the renting of both properties
We have about £70,000 sitting in savings accounts with very little
interest.
So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
What do you all think??
Really ?? I've just remortgaged and must've missed a trick somewhere :rotfl:0 -
I think you've not given enough information for anyone here to double guess your accountant.
Presumably you are currently renting, and this is an alternative to renting for another 3-5 years before something else happens. But thats just a presumption, maybe you are living with your parents who after 40 years are fed up and kicking you out
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Thank s for that!!
No we've been touring in our caravan,which I enjoy but my husband's becoming a bit fed up,he wants a base.Also in 3years I should receive my state pension.hes younger than me.
Hope this helps
Thanks0 -
It doesn't really help. You said "this will only be for 3/5 years". OK you get your SP then. So? Why is that significant? What would you do differently? SP isn't normally so generous that it makes a radical lifestyle change to people.
You haven't stated the rationale behind an IO mortgage.
Is that because thats all you could afford? Or because you'd move in 3-5 years? Or you'd sell the other houses? Or its tax advantageous? Or you'd move elsewhere?0 -
What is the plan to pay off the mortgage?The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
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What do you all think??
I think you need a better plan that covers a longer period and goals.to buy a small flat for us to live in ?This would be only for about 3/5years.
Without knowing what will happen in 3/5 years difficult to understand what the goals might be.0 -
Given the transaction costs would you not be better off renting?0
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Many thanks to all
After giving the figures and great deal of thought we've decided to not go ahead.!
Many thanks0
This discussion has been closed.
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